S.132 - Filing Relief for Natural Disasters Act (119th Congress)
Summary
The "Filing Relief for Natural Disasters Act" (S.132) aims to amend the Internal Revenue Code of 1986 to modify rules for postponing certain tax deadlines due to disasters. It allows the Secretary of the Treasury to postpone federal tax deadlines upon the written request of a state governor (or the Mayor of DC) for state-declared disasters. The bill also extends mandatory extensions for affected deadlines from 60 to 120 days.
Expected Effects
The act will provide more flexibility and time for individuals and businesses to meet their tax obligations following natural disasters. This will apply to both federally declared and state-declared disasters. The extended deadlines will help alleviate financial stress and administrative burdens during recovery periods.
Potential Benefits
- Provides additional time for taxpayers to meet deadlines after state-declared disasters.
- Offers flexibility to state governors (and the Mayor of DC) to request federal tax deadline postponements.
- Reduces potential penalties and interest for late filings or payments due to disaster-related disruptions.
- Simplifies the process for obtaining tax relief after a disaster.
- Extends mandatory extensions to 120 days, providing more breathing room.
Potential Disadvantages
- May create administrative challenges for the IRS in managing and processing extensions.
- Could potentially delay government revenue collection.
- Requires clear definitions of 'qualified State declared disaster' to avoid misuse.
- Potential for increased complexity in tax filing for individuals and businesses operating in multiple states with varying disaster declarations.
- The act does not address the underlying issues that cause financial hardship during disasters.
Constitutional Alignment
This bill appears to align with the general welfare clause of the US Constitution, as it aims to provide relief to citizens affected by natural disasters. Congress has the power to lay and collect taxes, duties, imposts and excises, to pay the debts and provide for the common defense and general welfare of the United States (Article I, Section 8, Clause 1). The bill modifies the tax code to provide relief during disasters, which can be seen as promoting the general welfare. The bill does not appear to infringe on any specific constitutional rights or limitations.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).